Pharmaceutical Manufacturer
Philips RS North America LLCHeadquarters
Find BBB Accredited Businesses in Pharmaceutical Manufacturer.
Information and Alerts
Alert Details
This business has 1 alert.
Government Actions
Philips Subsidiary to Pay Over $24 Million for Alleged False Claims Related to Medical Equipment
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On September 1, 2022 Philips RS North America LLC, formerly known as Respironics Inc. agreed to pay over $24 million to resolve False Claims Act allegations that it misled federal healthcare programs by press release paying kickbacks to durable medical equipment suppliers. The allegations were brought by the Department of Justice, Civil Division.
The settlement resolves allegations that Respironics caused suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal inducements to the durable medical equipment suppliers. Respironics allegedly gave the durable medical equipment suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians.
In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement Office of Inspector General, U.S. Department of Health. The Corporate Integrity Agreement requires Respironics to implement and maintain a robust compliance program that includes review of arrangements with referral sources and monitoring of Respironics’ sales force and also requires Respironics to retain an independent monitor, selected by the Office of Inspector General, to assess the effectiveness of Respironics’ compliance systems.
The settlement provides that Respironics will pay $22.62 million to the United States, and in addition, will pay $2.13 million to the various states as a result of the impact of Respironics’ conduct on their Medicaid programs, pursuant to the terms of separate settlement agreements that Respironics has, or will enter into, with those states.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
More details are available in the press release.
BBB Business Profiles may not be reproduced for sales or promotional purposes.
BBB Business Profiles are provided solely to assist you in exercising your own best judgment. BBB asks third parties who publish complaints, reviews and/or responses on this website to affirm that the information provided is accurate. However, BBB does not verify the accuracy of information provided by third parties, and does not guarantee the accuracy of any information in Business Profiles.
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
BBB Business Profiles generally cover a three-year reporting period. BBB Business Profiles are subject to change at any time. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile.
As a matter of policy, BBB does not endorse any product, service or business. Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation. BBB charges a fee for BBB Accreditation. This fee supports BBB's efforts to fulfill its mission of advancing marketplace trust.